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["lkvp" <lkvp AT floydva.net>]

---------- Original Message ----------------------------------
From: Don Bowen Date:  Tue, 10 May 2005 20:56:21 -0700

>Is it to take the increased equity out?
>
There will always be people late to the refi table, they decide to finally do 
it when rates are on the way up.  

Many people, like myself, are now refinancing to pay off home equity lines of 
credit (heloc).  Here's but one example:  Two years ago I put down 20% on the 
house in town used for our businesses from a heloc on our primary home. 
Equity lines are going up with the prime rate, so it now makes sense to pay 
off helocs.  We could keep an 80% loan (no mtg. ins.) on the office since the 
value has increased and pull out enough equity to pay off the heloc. I now 
owe more on the office (an investment/rental property) and less on my 
home/farm and traded a fixed rate loan at 5.875% for a heloc that began at 
4.25% and was at 6.75% and climbing.  The ultimate goal, I still believe, is 
to be debt-free, but until that day arrives this is a step in the right 
direction.

Lisa